The case involves an appeal against an order dated July 24, 2019, by the NCLT, Mumbai Bench, concerning the Corporate Insolvency Resolution Process (CIRP) of Ruchi Soya Industries Limited. The Committee of Creditors (CoC) approved a resolution plan submitted by Patanjali Ayurved Limited. The appellant, DBS Bank Ltd., Singapore, challenged the distribution of proceeds under the resolution plan, arguing that the CoC's decision on distribution was arbitrary and ignored the law and the appellant's concerns. The appellant claimed that its high-value security interest covered around 90% of its exposure and requested the CoC to consider this during the distribution of proceeds.
DBS Bank Ltd., Singapore, is a financial creditor of Ruchi Soya Industries Limited, with an admitted claim of Rs. 8398 Crores, including a financial debt of USD50 Million (Rs.243 Crores approximately) secured as a sole first charge on fixed assets. The Committee of Creditors (CoC) approved a resolution plan submitted by Patanjali Ayurved Limited. DBS Bank voted against the resolution plan's approval due to concerns about the distribution of proceeds, arguing that the CoC arbitrarily approved a pari passu distribution, ignoring the law and DBS Bank's security interests. DBS Bank claimed its security interest covered around 90% of its exposure. The Adjudicating Authority (NCLT, Mumbai Bench) approved the resolution plan on July 24, 2019. DBS Bank filed an appeal
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NCLT, Mumbai Bench, issued an order…
The Committee of…
The case involves an appeal against an order dated July 24, 2019, by the NCLT, Mumbai Bench, concerning the Corporate Insolvency Resolution Process (CIRP) of Ruchi Soya Industries Limited. The Committee of Creditors (CoC) approved a resolution plan submitted by Patanjali Ayurved Limited. The appellant, DBS Bank Ltd., Singapore, challenged the distribution of proceeds under the resolution plan, arguing that the CoC's decision on distribution was arbitrary and ignored the law and the appellant's concerns. The appellant claimed that its high-value security interest covered around 90% of its exposure and requested the CoC to consider this during the distribution of proceeds.
DBS Bank Ltd., Singapore, is a financial creditor of Ruchi Soya Industries Limited, with an admitted claim of Rs. 8398 Crores, including a financial debt of USD50 Million (Rs.243 Crores approximately) secured as a sole first charge on fixed assets. The Committee of Creditors (CoC) approved a resolution plan submitted by Patanjali Ayurved Limited. DBS Bank voted against the resolution plan's approval due to concerns about the distribution of proceeds, arguing that the CoC arbitrarily approved a pari passu distribution, ignoring the law and DBS Bank's security interests. DBS Bank claimed its security interest covered around 90% of its exposure. The Adjudicating Authority (NCLT, Mumbai Bench) approved the resolution plan on July 24, 2019. DBS Bank filed an appeal
…NCLT, Mumbai Bench, issued an order…
The Committee of…